HOUSE DOCKET, NO. 3230        FILED ON: 1/14/2009

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 1049

The Commonwealth of Massachusetts

_______________

In the Year Two Thousand Nine

_______________

An Act Relative to Mortgage Payments..

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

Ms Spiliotis hereby amends section 56 of Chapter 183 by inserting the following section at the end,

A mortgagor shall not be required to pay a prepayment fee or penalty, or be have funds refused by a bank for property insurance or tax payments, due to limitations set by state or federal agencies for ceiling amounts held in escrow, for the term of the loan.

Residential real estate payments under the terms of a first mortgage including property tax and insurance premiums shall be recalculated as needed.

The commissioner of banking and insurance shall establish regulations rules as deemed necessary to carry out the purposes of this section. Not limited to emergency provisions and unfair payments under the provisions of Chapter 167 of the Massachusetts General Laws.